He said: "You entered into a partnership to police it. That was the code of practice and you went public with it on the launch. By your inaction, you willfully encouraged those who were selling the illicit goods."

The prosecution arose from a council surveillance operation, launched after complaints of fake CDs, DVDs and videos at the May 2003 sale.

On November 2, 2003, police and trading standards officers raided the sale and seized computer equipment and discs.

Banks was also ordered to pay £2,000 costs by Judge Earl after the prosecution brought by Redcar and Cleveland Council.

Banks, of Ouston, Chester-le-Street, has now improved measures to stop illegal activities, according to his solicitor George Tilley.

After the case, Jeff Bell, chief trading standards officer, said: "This is an important result for trading standards and the rule of law nationwide.

"No longer will operators and site owners of car boot sales be able to wash their hands of the illegal activities that go on under their noses."